October 8, 2020
The primary week of October is full and an insane quantity of data has been thrown at us. With the approaching election and persevering with pandemic, it looks like day by day we’re thrown for a loop with new info.
At the start of the month no info was extra globally stunning or talked about than the information of President Donald Trump testing constructive for COVID-19 and being despatched to Walter Reed Hospital for remedy.
It looks like everybody had a unique response to this info however one space that noticed a shift on account of the information was the stock market. Within the hours following the announcement of Trump’s prognosis stocks fell over 1% general.
The Dow Jones, S&P 500, and Nasdaq all fell between 1 and a pair of % final Friday within the early buying and selling hours. Lots of stock market analysts say this occurred as a consequence of a knee-jerk response from traders, who had been possible unsure about how this information would have an effect on the markets.
Within the hours and days following the dip within the markets, stocks appeared to manage undoing any injury carried out.
It’s necessary to think about why Trump’s COVID-19 prognosis has something to do with the stock market, seeing because it has no direct impact on it. Such a information is one thing that traders have to concentrate to as a result of they incorporate political dangers into buying and selling choices.
As morbid because it sounds traders perceive that if Trump had been to die of COVID-19, chaos would possible observe. Drastic adjustments within the stock market have occurred with presidents earlier than together with when JFK was assassinated and when Woodrow Wilson had the Spanish flu.
Traders had been already hoping for an upturn in client spending if one other stimulus package deal is accredited, however this week has proven a stalling of that approval by Donald Trump. And as increasingly individuals underneath Trump’s administration take a look at constructive for COVID-19, there’s extra uncertainty amongst traders.
I feel that what issues now could be much less about what occurs with Trump and his administration’s restoration from COVID-19, however what occurs after the election. Whatever the end result, come November this election will set the precedent for the stock markets for the upcoming yr and everything of the subsequent president’s time period.
Future Blanchard is a junior administration main. She may be reached at 581-2812 or [email protected]